FG halts 5% tax on telecom services

The Federal Government on Monday suspended the controversial five percent excise duty on telecommunication services recently announced by the Ministry of Finance.

The Minister of Communications and Digital Economy, Isa Pantami, who broke the news of the suspension at the inaugural meeting of the Presidential Committee on Excise Duty for the Digital Economy Sector in Abuja, said the sector was already overtaxed on multiple fronts and didn’t need more.

Pantami said he petitioned President Muhammadu Buhari over the long term effect of the tax if allowed to stay and got his approval to suspend the tax.

He was also allowed to constitute a committee which will look at the tax critically and advise the president appropriately.

The committee include: Pantami Chairman, while the Minister of Finance and National Planning, Chairman Federal Inland Revenue Services, Executive Vice Chairman of the Nigerian Communications Commission  and Representatives of all the telecom companies in Nigeria are members.